A Company Has Total Fixed Costs of $180,000 and a Contribution

question 49

Multiple Choice

A company has total fixed costs of $180,000 and a contribution margin ratio of 30%.How much sales are necessary to break even?

• A)$540,000
• B)$600,000
• C)$54,000
• D)$126,000

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Definitions:

Economic Expansion

A period of increased business activity and economic growth, characterized by higher employment, income, and production levels.

U.S.

Short for the United States of America, a country primarily located in North America.

U.S. Population

U.S. Population refers to the total number of people living in the United States at a given time, including both citizens and non-citizens.

Million

A numerical value representing one thousand thousands, or 1,000,000, often used as a unit of measure in demographics, finance, and other areas.